Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Highland	KMS	Advisory Board And Consultants	Employees	Preferred Stock	Common Stock	Common Stock Highland	Common Stock KMS	Additional Paid-In Capital	Additional Paid-In Capital Highland	Additional Paid-In Capital KMS	Additional Paid-In Capital Advisory Board And Consultants	Additional Paid-In Capital Employees	Accumulated Deficit	Noncontrolling Interest
Beginning Balance (in shares) at Dec. 31, 2013						6,189,497	181,433,815
Beginning Balance at Dec. 31, 2013	$ 193,413					$ 1	$ 18			$ 350,780					$ (157,438)	$ 52
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock purchase plan (in shares)							89,581
Issuance of common stock under employee stock purchase plan	291									291
Exercise of stock options (in shares)							2,282,060
Exercise of stock options	2,969									2,969
Exercise of warrants (in shares)							13,333
Exercise of warrants	22									22
Stock-based compensation				$ 6,440	$ 4,099								$ 6,440	$ 4,099
Issuance of restricted stock (in shares)							14,409
Issuance of restricted stock	2									2
Repurchase and retirement of common stock (in shares)							(2,846,395)
Repurchase and retirement of common stock	(9,535)									(9,535)
Third party investment in noncontrolling interest	40															40
Stock issued during period (in shares)						4,906,734		2,540,762	1,440,922
Stock issued, during period	108,617	$ 7,953	$ 6,052							108,617	$ 7,953	$ 6,052
Preferred stock dividends declared and paid	(17,244)									(17,244)
Net income (loss)	33,352														33,433	(81)
Ending Balance (in shares) at Dec. 31, 2014						11,096,231	184,968,487
Ending Balance at Dec. 31, 2014	336,471					$ 1	$ 18			460,446					(124,005)	11
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock purchase plan (in shares)							192,978
Issuance of common stock under employee stock purchase plan	545									545
Exercise of stock options (in shares)							1,194,425
Exercise of stock options	1,471									1,471
Exercise of warrants (in shares)							449,482
Stock-based compensation				3,183	5,576								3,183	5,576
Issuance of restricted stock (in shares)							1,206,081
Issuance of restricted stock	1						$ 1
Repurchase and retirement of common stock (in shares)							(5,673,415)
Repurchase and retirement of common stock	(16,355)									(16,355)
Third party investment in noncontrolling interest	80															80
Stock issued during period (in shares)						3,586,790
Stock issued, during period	84,380									84,380
Preferred stock dividends declared and paid	(28,108)									(28,108)
Net income (loss)	(11,213)														(11,151)	(62)
Ending Balance (in shares) at Dec. 31, 2015						14,683,021	182,338,038
Ending Balance at Dec. 31, 2015	376,031					$ 1	$ 19			511,138					(135,156)	29
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock purchase plan (in shares)							210,330
Issuance of common stock under employee stock purchase plan	$ 481									481
Exercise of stock options (in shares)	1,415,000						3,920,950
Exercise of stock options	$ 2,580									2,580
Exercise of warrants (in shares)	12,389,544						12,389,544
Exercise of warrants	$ 17,976									17,976
Stock-based compensation				$ 50	$ 5,261								$ 50	$ 5,261
Issuance of restricted stock (in shares)							1,331,000
Repurchase and retirement of common stock (in shares)							(6,132,124)
Repurchase and retirement of common stock	(14,749)									(14,749)
Third party investment in noncontrolling interest	40															40
Stock issued during period (in shares)						1,161,895
Stock issued, during period	27,580									27,580
Preferred stock dividends declared and paid	(30,438)									(30,438)
Net income (loss)	(22,311)														(22,269)	(42)
Ending Balance (in shares) at Dec. 31, 2016						15,844,916	194,057,738
Ending Balance at Dec. 31, 2016	$ 362,501					$ 1	$ 19			$ 519,879					$ (157,425)	$ 27